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Choice: My choice for this hedging game round #4 is option A, let it float (not hedge at all). My reasoning for choosing option A
Choice: My choice for this hedging game round #4 is option A, let it float (not hedge at all). My reasoning for choosing option A is because as seen on the graph above from January 1973 to about December 1974, there was a considerable stock market crash that started one of the depressions since the Great economic depression downturn one took place. By analyzing the graph chart above towards its left, it can be observed that the commodity has been performing a lot better and increasing amidst the great depression event. Therefore, I am expecting that the price continues to keep going up, and if it were the case that I hedge, I would be in position of losing money if the price goes above the $84 mark. Henceforth, I choose to float my commodity and not hedge at all for this round
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